The finance team of Talbot has identified the following information for the first year of the project Projected sales $18 million Operating costs (excluding depreciation) $9 million Depreciation $2 million Interest expense $4 million The company faces a 25 tax rate What is the cash flow for the first year

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The finance team of Talbot has identified the following information for the first year of the project: Projected sales $18 million Operating costs (excluding depreciation)

The finance team of Talbot has identified the following information for the first year of the project:

Projected sales	$18 million
Operating costs (excluding depreciation)	$9 million
Depreciation	$2 million
Interest expense	$4 million

The company faces a 25% tax rate. What is the cash flow for the first year?

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